Correlation Between Luzhou Lao and Contemporary Amperex
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luzhou Lao Jiao and Contemporary Amperex Technology, you can compare the effects of market volatilities on Luzhou Lao and Contemporary Amperex and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Luzhou Lao with a short position of Contemporary Amperex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luzhou Lao and Contemporary Amperex.
Diversification Opportunities for Luzhou Lao and Contemporary Amperex
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luzhou and Contemporary is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Luzhou Lao Jiao and Contemporary Amperex Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contemporary Amperex and Luzhou Lao is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Luzhou Lao Jiao are associated (or correlated) with Contemporary Amperex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contemporary Amperex has no effect on the direction of Luzhou Lao i.e., Luzhou Lao and Contemporary Amperex go up and down completely randomly.
Pair Corralation between Luzhou Lao and Contemporary Amperex
Assuming the 90 days trading horizon Luzhou Lao Jiao is expected to under-perform the Contemporary Amperex. In addition to that, Luzhou Lao is 1.11 times more volatile than Contemporary Amperex Technology. It trades about -0.06 of its total potential returns per unit of risk. Contemporary Amperex Technology is currently generating about 0.01 per unit of volatility. If you would invest 25,624 in Contemporary Amperex Technology on August 29, 2024 and sell it today you would earn a total of 48.00 from holding Contemporary Amperex Technology or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luzhou Lao Jiao vs. Contemporary Amperex Technolog
Performance |
| Timeline |
| Luzhou Lao Jiao |
| Contemporary Amperex |
Luzhou Lao and Contemporary Amperex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luzhou Lao and Contemporary Amperex
The main advantage of trading using opposite Luzhou Lao and Contemporary Amperex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luzhou Lao position performs unexpectedly, Contemporary Amperex can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Contemporary Amperex will offset losses from the drop in Contemporary Amperex's long position.| Luzhou Lao vs. Saurer Intelligent Technology | Luzhou Lao vs. Fiberhome Telecommunication Technologies | Luzhou Lao vs. Jiujiang Shanshui Technology | Luzhou Lao vs. Western Superconducting Tech |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |